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28<br />

DOING BUSINESS 2014<br />

Governments and World Bank<br />

Group regional staff<br />

After receiving the completed questionnaires<br />

from the Doing Business respondents,<br />

verifying the information against<br />

the law and conducting follow-up inquiries<br />

to ensure that all relevant information<br />

is captured, the Doing Business team<br />

shares the preliminary findings of the report<br />

with governments through the Board<br />

of Executive Directors and the regional<br />

staff of the World Bank Group (figure<br />

2.3). Through this process government<br />

authorities and local World Bank Group<br />

staff in the 189 economies covered can<br />

alert the team about, for example, regulatory<br />

reforms not picked up by the respondents<br />

or additional achievements of regulatory<br />

reforms already captured in the<br />

database. In response to such feedback,<br />

the Doing Business team turns to the local<br />

private sector experts for further consultation<br />

and, as needed, corroboration. In<br />

addition, the team responds formally to<br />

the comments of governments or regional<br />

staff and provides explanations of the<br />

scoring decisions.<br />

Improvements to the methodology<br />

The methodology has undergone continual<br />

improvement over the years. For<br />

enforcing contracts, for example, the<br />

amount of the disputed claim in the<br />

case study was increased from 50% of<br />

income per capita to 200% after the<br />

first year of data collection, as it became<br />

clear that smaller claims were unlikely to<br />

go to court. Another change related to<br />

starting a business. The minimum capital<br />

requirement can be an obstacle for<br />

potential entrepreneurs. Doing Business<br />

measured the required minimum capital<br />

regardless of whether it had to be paid<br />

up front or not. In many economies only<br />

part of the minimum capital has to be<br />

paid up front. To reflect the relevant barrier<br />

to entry, the paid-in minimum capital<br />

has been used rather than the required<br />

minimum capital.<br />

This year’s report includes an update in<br />

the methodology for 2 indicator sets—<br />

paying taxes and trading across borders.<br />

For trading across borders, documents<br />

that are required purely for purposes of<br />

preferential treatment are no longer included<br />

in the list of documents (for example,<br />

a certificate of origin if the use is<br />

only to qualify for a preferential tariff rate<br />

under trade agreements). For paying taxes,<br />

the value of fuel taxes is no longer included<br />

in the total tax rate because of the<br />

difficulty of computing these small taxes.<br />

Fuel taxes continue to be counted in the<br />

number of payments.<br />

In addition, the rule establishing that<br />

each procedure must take at least 1 day<br />

was removed for procedures that can be<br />

fully completed online in just a few hours.<br />

When the indicators were first developed<br />

in 2002, online procedures were not<br />

widespread globally. In the ensuing years<br />

there has been an impressive acceleration<br />

in the adoption by governments and the<br />

private sector of the latest information<br />

and communication technologies for the<br />

provision of various services. While at the<br />

time Doing Business did not see the need<br />

to create a separate rule to account for<br />

online procedures, the widespread use<br />

of the new technologies today suggests<br />

that such distinction is now justified and<br />

the Doing Business methodology was<br />

changed this year to reflect the practice.<br />

This change affects the time indicator<br />

for starting a business, dealing with construction<br />

permits and registering property.<br />

20 For procedures that can be fully completed<br />

online, the duration is now set at<br />

half a day rather than a full day.<br />

Data adjustments<br />

All changes in methodology are explained<br />

in the data notes as well as on the Doing<br />

Business website. In addition, data time<br />

series for each indicator and economy are<br />

available on the website, beginning with<br />

the first year the indicator or economy<br />

was included in the report. To provide a<br />

comparable time series for research, the<br />

data set is back-calculated to adjust for<br />

changes in methodology, including those<br />

FIGURE 2.3 The Doing Business data collection cycle<br />

Questionnaires developed<br />

November:<br />

Questionnaires developed in<br />

consultation with different<br />

expert groups<br />

Media preparation and<br />

report launch<br />

September−October:<br />

Coordination with regional<br />

communication teams for media<br />

outreach and prelaunch briefings<br />

with World Bank Group regional<br />

teams<br />

Sept−Nov<br />

Questionnaires<br />

administered<br />

17,500 sent<br />

for DB2014<br />

Dec−Jan<br />

June−Aug<br />

June 1: cutoff<br />

date for<br />

reforms<br />

recorded<br />

Feb−May<br />

Writing and publication<br />

August: Comments on the report<br />

and data received from across the<br />

World Bank Group through an<br />

internal review process<br />

Data verification<br />

Conference calls and videoconferences with contributors<br />

Written correspondence<br />

Travel to 33 economies for data collection and reform<br />

verification for DB2014<br />

Data analysis and government feedback<br />

Analysis and verification of data received<br />

13,000 contributions for DB2014<br />

March−April: Request for input from all World<br />

Bank Group regional teams and 25 Executive<br />

Director offices representing their country<br />

governments<br />

Data scoring<br />

58,000 data points coded in DB2014<br />

238 reforms in 114 economies recorded in<br />

DB2014<br />

June: Request to review reforms captured sent to all<br />

World Bank Group regional teams and 25 Executive<br />

Director offices representing their country governments

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